Have you ever given up on your forex trading plan?
If not, you should be reading this anyway because you’re probably lying.
If you have, why do you think you are “insincere”?
1. You.
Do you blame him for your personality? Temporary insanity? Or an excuse that it’s all just part of the trading?
You may indeed be right. There are many factors that can contribute to your indiscipline. Depending on your personality, background, training, and experience in the forex markets, you may have trouble controlling your tendency to act on impulse.
For some, rushing is in their blood. They have difficulty concentrating. They get bored easily. They are looking for a quick thrill to rest.
For others, impulsiveness is linked to emotional vulnerability. Some people have so much difficulty controlling their emotions that they react impulsively out of frustration.
Temporary setbacks are inevitable in forex trading.
When a highly emotional trader experiences one of these setbacks, he becomes very upset and may close a position early, or, in a fit of frenzy, make a major trading mistake that can only be fixed by closing the position.
There is no perfect trader. Any forex trader can be impulsive at times. Research has shown, for example, that when people are tired, they have difficulty concentrating.
As much as your conscious mind cares about sticking to your trading plan, your subconscious mind thinks, “Who cares? I just want to get this out of the way so I can relax.”
Your psychological resources are exhausted. When you push yourself to the limits, you will have a hard time focusing on and sticking to your trading plan.
Other forex traders may be impulsive because they lack experience. You can’t expect to stick to a trading plan when you don’t know what you’re doing.
If you are new to the world of forex, you will lack confidence and feel uncomfortable. You will begin to hesitate to pull the trigger. You wouldn’t want to risk your money because you don’t have that strong belief that your plan will turn a profit that experienced traders offer.
2. It’s not you, it’s your trading plan.
You cannot commit to a trading plan that you cannot follow.
When you have an incomplete forex trading plan where important parts are left unclear, you will find it difficult to follow through.
The trading plan should consist of clearly defined entry and exit strategies. The signals that indicate how the trade is going are also important. Never underestimate the importance of clearly planning a trading plan.
The winning trader is the disciplined trader. Disciplined traders stick to trading plans. They don’t act motivated.
It is essential that you identify the reasons why you are trading on an impulse basis. It may be your personality or it may be your trading plan, but whatever it is, you must gain awareness of these factors and resolve them.
Once you control the urge to act on impulse, you will trade more profitably and more consistently.